- Three-quarters of Gen Z and Millennial investors are open to AI managing their portfolios
- Despite AI’s growing prominence, the share of retail investors expecting AI-related stocks to rise fell from 57% to 47% over the last year
- Retail’s next dollar moves beyond technology to healthcare & energy, financial services loses preferred treatment for the first time in three years
- Retail investors are 3x more likely to be attracted than deterred by Big Tech’s AI spending
September 30, 2026 – America’s youngest retail investors are separating their enthusiasm for artificial intelligence as an investing tool from their expectations for AI-related stocks, according to the latest quarterly Retail Investor Beat from trading and investing platform etoro.
The study of 1,000 US retail investors found that 55% of retail investors already use or are open to using AI technology to pick or alter their investments. This is led by Gen Z and Millennials, of whom more than three-quarters (77% and 79% respectively) express openness to AI portfolio management. Retail investors using AI say they believe it will save them time on research (42%), is the future of investing (40%), and will make better decisions (31%).
Investors Already Using or Open to Using AI to Pick / Alter Their Portfolios
| Generation | Q3 2024 | Q3 2025 | Q3 2026 | 3-Year Change |
| Gen Z | 75% | 76% | 77% | +2pp |
| Millennials | 70% | 88% | 79% | +9pp |
| Gen X | 60% | 76% | 68% | +8pp |
| Boomers | 27% | 29% | 32% | +5pp |
Bret Kenwell, US Investment Analyst at etoro, said: “Gen Z’s relationship with AI is becoming increasingly nuanced. While younger investors are comfortable incorporating AI into their investment decisions, that does not automatically translate into unrestrained bullishness on AI-related stocks. That distinction is important. For Gen Z, AI is becoming more than a trade; it is part of the investing toolkit. They can believe in and leverage the technology without assuming every company associated with AI will deliver outsized returns.”
AI Optimism Normalizes After Years of Exuberance
Expectations for outperformance by AI stocks tempered across the board with just 47% of investors expecting AI-related stock prices to rise, down from 57% in Q3 2025. Over the same period, the proportion of investors expecting AI-related stocks to decline grew from 12% to 17%. The change is most pronounced among Millennials; half (50%) expect AI-related stocks to rise, compared with 70% a year ago. The proportion of Millennials expecting the AI-stocks to decline increased from 14% to 21%. Gen Z also takes a measured view of AI as an investment theme, as just 41% expecting stock prices to rise in 2026, down from 47%.
Retail Investors’ Performance Expectations of AI-Related Stock
| AI-Related Stock Performance | Q3 2025 | Q3 2026 | YoY change |
| Expecting AI-related stocks to rise | 57% | 47% | -10pp |
| Expecting AI-related stocks to rise significantly | 18% | 12% | -6pp |
| Expecting AI-related stocks to decline | 12% | 17% | +5pp |
| Gen Z expecting AI-related stocks to rise | 47% | 41% | -6pp |
| Millennials expecting AI-related stocks to rise | 70% | 50% | -20pp |
| Millennials expecting AI-related stocks to decline | 14% | 21% | +7pp |
Bret Kenwell added: “Our research points to normalizing expectations rather than a rejection of AI. Investors are separating their enthusiasm for the technology from their expectations for the stocks associated with it. AI moved quickly from an emerging investment narrative to an established market theme, so it is natural to see expectations evolve alongside it. Retail investors are becoming more measured and disciplined in how they assess opportunities, and that is a healthy development. A more discerning approach can help investors look beyond the excitement surrounding AI and consider whether a company’s growth prospects justify its valuation, keeping prices tethered more closely to reality.”
Big Tech’s AI Spending Remains Attractive, Sector Appetite Broadens
As AI sentiment cools, retail investors continue to show confidence in the largest tech companies; 44% expect the so-called Magnificent 7 to outperform the broader market, unchanged from a year ago. Even as AI optimism moderates, Big Tech’s heavy investment in AI enhances its appeal as 43% of investors report that the significant sums invested in AI by the Magnificent 7 makes them more likely to invest in the companies. Just 14% say the spending makes them less likely to invest. Younger investors are most enthusiastic with 48% of Gen Z and 60% of Millennials saying the scale of AI investment makes them more likely to invest in the group, compared to 50% of Gen X and only 28% of Baby Boomers.
When planning where to deploy new capital, the shift in sentiment becomes abundantly clear. While technology (17%) remains the top sector to which investors plan to increase exposure, its lead has narrowed considerably (down from 25% a year ago). Over the same period, healthcare rose from 6% to 10%, and energy grew from 8% to 11%. This marks the first time in 12 quarters where financial services (8%) falls outside the top sectors. The shift is particularly striking among Gen Z, with healthcare and technology tied as the top sectors for planned investments (18%), with energy (16%) close behind.
Bret Kenwell concluded: “AI is not losing relevance for this generation, but it may be losing its exclusivity. Technology and AI may dominate the headlines, but younger investors continue to look beyond them for other opportunities. Healthcare has caught technology as a sector where Gen Z plans to increase exposure, while energy is close behind. The message is not that retail investors are abandoning AI or tech, it’s that they are broadening their view of where the next opportunity may come from.”
ENDS
Notes to editors
The latest Retail Investor Beat was based on a survey of 11,000 retail investors across 13 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Singapore, Italy and Spain. The following countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey was conducted from August 13 – 28, 2026 and carried out by research company Opinium. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be etoro users.
The figures and results presented in this survey are based on the responses of participants at the time the survey was conducted. They reflect responders’ opinions, views and perceptions and should not be interpreted as investment advice or a guarantee of future performance. Percentages and results may not be representative of the broader population and are subject to change as market conditions and sentiment evolve.
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